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Binance Responds to France Crackdown News, Says It Upholds High Compliance Standards

Fri, 06/16/2023 - 14:15
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Godfrey Benjamin
Binance has responded to recent news regarding its investigation by Paris public prosecutor
Binance Responds to France Crackdown News, Says It Upholds High Compliance Standards
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In the wake of the recent revelation that Binance exchange, the largest crypto trading platform in the world, is under investigation by French authorities, the firm has broken its silence on the matter. Responding to independent Chinese journalist Colin Wu, known on Twitter as Wu Blockchain, Binance said that it "abides by all laws in France," as it does in every other market it operates in.

The news as first reported by Coindesk noted that the crypto trading behemoth was under investigation for aggravated money laundering offenses. The investigation was allegedly launched by the Paris public prosecutor, and part of the suspicion was that Binance might be offering its services to local investors illegally alongside implementing poor money laundering checks.

Binance response

In response, the trading firm revealed that it has been coordinating with regulators in France as confirmed by the onsite visit it had with relevant authorities in the country. The site visit is a major requirement for firms operating in the French financial ecosystem and, thus far, Binance said it has met all of its obligations accordingly.

"Binance invests considerable time and resources into cooperating with law enforcement globally. We abide by all laws in France, just as we do in every other market we operate. We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification," the exchange said in its quoted tweet.

CZ Denies Binance’s Bitcoin and BNB Sales, but Crypto Community Is Doubtful

Binance has had a very cordial relationship with regulators in France, and the trading platform was even considering establishing its regional headquarters in the country. It remains unclear how the current alleged crackdown will impact the exchange's operations in the country, but it will rely on its licenses in other countries, including Italy to extend services to Europeans, if need be.

Binance's expanding woes

Being the biggest trading platform in the crypto ecosystem has brought Binance many woes, which announced today it will be exiting the Dutch market after being unable to secure the required license to operate as a Virtual Asset Service Provider (VASP).

The operational challenges come in addition to pending charges from both the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.